Windsor, Inc., issues 7%, 10-year bonds with a face amount of $1 million on January 1, Year 1, for $932,048, when the market rate of interest is 8%. Interest expense associated with this bond for the first semiannual period is:

The Interest expense associated with this bond for the first semiannual period is $35,000.

Explanation:

interest expense for first semi annual period = $1,000,000*7%*1/2

= $35,000

Therefore, The Interest expense associated with this bond for the first semiannual period is $35,000.